US inflation pressures fall to a six-year low - ECRI

NEW YORK, Sept 5 (Reuters) - U.S. inflation pressures fell in August to a six-year low, driven by disinflationary moves in measures of commodity prices, labor market conditions and vendor performance, a report said on Friday.

The Economic Cycle Research Institute’s U.S. Future Inflation Gauge (USFIG), designed to anticipate cyclical swings in the rate of inflation, fell to 109.3 in August from 112.4 in July.

The reading was the lowest since July 2002, when the index stood at 108.2.

“With the USFIG falling to a fresh 73-month low, underlying inflationary pressures are now falling even more rapidly,” said Lakshman Achuthan, managing director at ECRI.

“This inflation outlook from the FIG is in line with the fact that business cycle recessions always kill inflation as discretionary spending comes under pressure.”

The USFIG annualized growth rate, which smooths out monthly fluctuations, took a dive to negative 11.0 percent from minus 7.5 percent in July, revised up from negative 7.6 percent. (Reporting by Rodrigo Campos, Editing by Chizu Nomiyama)